Summary: The Corporate Opportunity Doctrine dictates a fiduciary cannot take on a business opportunity that should be first reported to the corporation. Understand how the Corporate Opportunity Doctrine is used to curb conflicts of interest with tips from a lawyer in this free video on business law.
Robert Todd is the managing partner and president of Robert M. Todd, P.A. and Family Law Solutions. He is a certified family mediator and Florida Supreme Court certified civil...read more
"As you have been investing in corporations in Wall Street you have been paying more and more attention to what is going on on Wall Street and you are listening more attentively to the terminology and one of the terms you have heard recently is the corporate opportunity doctrine. Hello I'm Robert Todd and I'm here to answer the question how do I defend a claim against a corporate opportunity doctrine. Well first of all I think it is important to know that the corporate opportunity doctrine basically stands for the proposition that a fiduciary that is one to whom it has been entrusted a position of authority and power cannot take for him or herself a business opportunity that should be reported to or actually given to the corporation. The best example I can think of is The Board of Directors or the officers of the corporation becoming aware of the a business opportunity that the corporation could make money by engaging in that business opportunity and instead diverting that business opportunity to the individual board members of that Board of Directors or an individual officer obviously that would be a violation of the corporate opportunity doctrine. I'm Robert Todd and thank you for watching."
eHow Article: What Is the Corporate Opportunity Doctrine?